Mthuli Ncube repeals indigenisation law

Zimbabwe's government has repealed legislation which give Zimbabweans the right to take over and control foreign-owned companies.

The indigenisation law requires all companies to be at least 51% controlled by black Zimbabweans.

Last year, in an effort to attract foreign investment, the requirement was removed from the mining industry in all but the diamond and platinum sectors.

The requirement has now been removed for those two remaining sectors.

Zimbabwe's Finance Minister Mthuli Ncube made the announcement as part of his budget.

Here are some other changes:

The price of electricity has gone up with immediate effect, from $0.01 per kilowatt-hour to $0.03 for domestic and agriculture. And up to $0.06 for mining. The cost of power is still below regional averages and will still be subsidised.

Zimbabwe was overbudget by 532m Zimbabwean dollars in the first half of the year due to drought, Cyclone Idai, a cushioning allowance for civil servants and cost of living adjustment for government workers.

Zimbabwe's economy is now likely to shrink because of drought and power cuts. No new figures were given but the projections for the year had been 3.1% growth.